For 2022 to 2023, the National Insurance contributions rates for directors are different. Read CA44 to find out more about rates for directors. 3. Class 2 and Class 4 National Insurance (self
NATIONAL INSURANCE CONTRIBUTIONS (NICs) Class 1 NICs: Employee and employer rates and thresholds (£ per week) Tax year 2019-20 Tax year 2020-21 Weekly Lower Earnings Limit (LEL) £118 £120 Weekly Primary Threshold (PT) £166 £183 Weekly Secondary Threshold (ST) £166 £169 Upper Earnings Limit (UEL) £962 £962This means the LPL will be £11,908 for the 2022-23 tax year which is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570. HMRC's document also includes weekly and monthly figures to help calculate weekly / monthly pay. The increases in NICs of 1.25% - first announced last year - also took effect from April 2022.
The legislation to deal with the changes seeks to average their rates of NIC for the whole of 2022/23: it includes new NIC rates of 12.73% and 2.73% for payments to statutory directors for the whole of 2022/23 and 14.53% for employers. The rate from 6 April 2023 to 5 April 2024 on expenses and benefits is 13.8%. They must also pay Class 1A on some other lump sum payments, for example redundancy payments . HMRC has detailed . 440 492 767 747 588 690 16 784